Medical leave during studies

[wstrn24]

I have medical leave(it says withdrew on my transcript) during my studies here. When filling in the personal/education history, should I indicate it as unemployed or study? I have medical records and documents with school. People from school recommended me to volunteer withdraw to avoid paying tuitions for that term. And I also studied part-time for one term. Would this be an issue? This is a bit complicated... I wrote a letter of explanation but am not sure if that's enough. Any input would be very helpful. Thanks!